MeetMe to Acquire Skout $28.5 million in earnings and roughly 5.37 million common

brand-new DESIRE, Pa.–( BUSINESSES CABLE )–MeetMe, Inc. (NASDAQ: MEET), a community market frontrunner for personal knowledge, today launched it’s performed a definitive agreement to obtain Skout, a number one international mobile circle for satisfying new-people, for $28.5 million in funds and more or less 5.37 million typical percentage of MeetMe, implying a business value of $54.6 million considering MeetMe’s closing inventory rate on Summer 24, 2016. This acquisition produces MeetMe and Skout’s discussed vision to generate the biggest global services for fulfilling and communicating with new-people. The exchange is expected in order to greater level for monetization and enhanced success for any blended business.

Skout are a prominent mobile software for meeting new-people with:

Key shows associated with envisioned measure from the newer combined team integrate:

• Mobile phone MAU of 8.5 million, a growth of 69% from MeetMe’s 5.0 million in May 2016;
• Smartphone each day effective people (DAU) of 2.1 million, an increase of 73percent from MeetMe’s 1.24 million in-may 2016;
• Chats delivered each day of 57.2 million, an increase of 96% from MeetMe’s 29.2 million average in June 2016;
• Mobile phone new registered users a day of 107,000, an increase of 65per cent from MeetMe’s 65,000 per day typical in 2016.

Investment effects of purchase:

• Anticipated to supply considerably improved level in consumer base and incomes, and exhibit stronger running influence.
• Presuming a prospective closing go out of Oct 1, 2016, MeetMe would anticipate their 2016 economic results to end up being money of between $70.5 and $73.5 million and Adjusted EBITDA of between $26.0 and $29.0 million.
• Expect Skout to contribute about $7.5 million of Adjusted EBITDA and stay accretive to revenue in the 1st year post-closing.

Geoff make, Chief Executive Officer of MeetMe, said, “We feel this mix provides a pathway to $100 million in sales in 2018 with modified EBITDA margins drawing near to 45 percentage. Im thrilled to create a couple of largest cellular programs for fulfilling and communicating with new people to the same profile. Skout is one of the earliest mobile social advancement service. I’ve known and monitored the company for more than eight years. We display not only equivalent eyesight additionally many of the exact same trick wedding metrics, including about similar few chats per consumer daily, plus a familiar advertising-driven business structure. I Will Be excited by chance to operate directly with the talented professionals to speed up increases and involvement across both programs across the world.”

“What’s a lot more,” make continuing, “this announcement appear during a time period of strong increases for MeetMe, with May mobile DAU of 1.24 million, right up 8% versus the Q1 typical, that can cellular MAU exceeding 5.0 million the very first time in a 30 days, or more 14percent versus the Q1 typical. We Think this exchange will furthermore build with this energy, drastically increasing our very own level, and enabling continued improvements to our suggestion system, speak, and Discuss, having a much greater impact and contact a lot more people.”

We expect that Skout will remain another brand name and separate cellular application adopting the closing for the purchase and its own head office will continue to be in bay area, CA, and then we has longer provides of job to the approximately 30 staff. Also, Skout’s founders Christian Wiklund and Niklas Lindstrom bring decided to assist with the change for 1 season following the finishing.

As studies have shown that users of personal breakthrough apps usually incorporate one or more on top of that, and given MeetMe and Skout express less than 5per cent convergence among their month-to-month productive user base, we think you will find a definite cross-promotional advantages between software. The geographic combine can subservient: while Skout’s largest nation, like MeetMe’s, could be the United States, Skout has ended 80percent worldwide and skews much more toward Asia, in which MeetMe has historically got little appeal. MeetMe promises to increase the monetization of their international audience centered on Skout’s successful track record within these areas.

David Clark, head monetary Officer of MeetMe, extra, “We anticipate the acquisition to shut in October with this seasons also to be accretive to revenue in order to produce extra free of charge income for MeetMe in the 1st 12 months following finishing and past. As time passes, we think that through additional synergies from combining our very own innovation networks, enhancing our monetization motor, cross-promoting to each consumer base, and accelerating MeetMe’s international monetization, we are able to generate extra value out of this purchase.”

The firm expects to fund the money part of the exchange mostly from MeetMe money on hands and money from businesses, and potentially from other types of funding offered to MeetMe.

Canaccord Genuity try offering as economic specialist and Morgan, Lewis & Bockius LLP are offering as a lawyer to MeetMe.

MeetMe Chairman John C. Abbott launched their resignation, successful right away, to focus on his company passions in Mexico and Brazil. “i’m thrilled observe Skout get in on the MeetMe collection,” Abbott said. “We have been tracking Skout for several years and therefore are excited by size and proportions developed by this fusion. Joining together two of the premier mobile sugardaddyforme ne demek apps for satisfying new-people is exactly aimed together with the Company’s long haul technique to create a global commander in cellular personal finding. With a good employees set up, I’m Sure the firm is within exceptional palms, experiencing powerful gains along with brilliant leads before it.”

Posting comments on Abbott’s resignation, make said, “John’s original vision of a general public marketplace commander for social advancement is an activity we plan to still perform against with single focus, and I am happy for his most efforts to MeetMe over the last nine age.”

Webcast and Convention Name Info

Control will host a webcast and conference ask Tuesday, Summer 28, 2016 at 8:30 a.m. Eastern time for you talk about the exchange. To gain access to the phone call control 888-481-2877 (+1 719-325-2393 outside of the united states of america) and when caused offer the associate passcode 7649062 to the driver. In addition, a webcast of this discussion telephone call might be readily available survive the trader connections part of the Company’s websites at www.meetmecorp.com and a replay associated with webcast are available for 3 months.

About MeetMe

MeetMe® try a leading social networking for encounter new-people in the US in addition to community market leader for personal discovery (NASDAQ: MEET). MeetMe allows you to realize new people to chat with on cellular devices. With more or less 90 % of site visitors originating from mobile and more than one million complete daily dynamic customers, MeetMe is fast becoming the personal get together location for the cellular generation. MeetMe try a leader in cellular monetization with a diverse money product comprising marketing and advertising, local marketing and advertising, virtual money, and subscription. MeetMe programs are available on new iphone 4, apple ipad, and Android in numerous languages, like English, Spanish, Portuguese, French, Italian, German, Chinese (vintage and Simplified), Russian, Japanese, Dutch, Turkish, Korean, Hindi, Bengali and Vietnamese. For more information, please visit meetmecorp.com.

About Skout

Rules G – Non-GAAP Economic Methods